The ‘race that stops the nation’ might be just around the corner but there’s something else worth racing towards this Spring. With interest rates at an all-time low and the property market looking up, you’ll have better odds making money by refinancing your home loan than making winnings on the Melbourne Cup.
Taking the lead – low interest rates
The first Tuesday in November might be a day for dressing up and sipping champagne, but it also marks the day the Reserve Bank of Australia (RBA) meets to decide monetary policy. At the October meeting, the RBA cut official rates to 0.75% – an historic low – and odds are on another rate cut in November or at least a decision to keep rates put. That’s worth popping the cork for.
While mortgage lenders don’t have to pass on official rate cuts, many do, so it’s a good time to compare rates and see if you can get a better deal. Uno brokers loans from 30 lenders – including the Big 4 and smaller lenders – and many are offering super competitive rates at the moment, depending on your circumstances.
uno research shows 59% of borrowers have never asked their bank or lender for a better rate. Don’t take a gamble with your current lender. Head to uno to find a product that will suit you and save you money.
Coming in second – house prices on the rise
House prices in Sydney were up 4.8% over the September quarter and 4.1% in Melbourne, with the most recent Domain House Price Report calling the recovery “remarkable” and marking an end to the steepest downturn since the 1980s. Unit prices rose 2.6%, the first quarterly gains since 2017. While both house and unit prices remain lower than a year ago, the news is positive for homebuyers and property investors who bought during the slump.
Taking a punt on Mer De Glace this Melbourne Cup may sound like a sure thing, but you can make a better financial decision right now by doing a cash out refinance. When you refinance to borrow money (from your property’s equity) to pay for a big ticket purchase – summer holiday, well-earned break or new year renovations, for example –
lenders call this a “cash out” refinance. Your equity is the difference between the value of your home and the amount you still owe on it. Thanks to a rise in property prices, it could be a substantial sum.
With the silly season upon us, be sensible instead and consider refinancing.
As Australia’s only Active Home Loan Manager, uno can:
- Help you get the right home loan (and most competitive rate) for your situation
- Monitor your loan and let you know whether it’s still the best rate available to you (even if you didn’t get it through us). Our technology loanScore- monitors your home loan/s daily to know if you’re getting a good deal or not (even if you didn’t get the loan from us).
- Help you renegotiate with your current bank or lender, if your current loan is no good and interest rate could be lowered
- Help you switch banks, if your current bank or lender won’t come to the party